Frontier Car Group Raise $22M, Inject $5 Million in its Nigerian Subsidiary

By May 27, 2017 Investment News
Out of the $22m FCG raised, Cars45 got $5m to fuel its growth in Nigeria. Apart from EchoVC, other investors that participated in the $22m round include Balderton Capital, TPG Growth, and NEA.

According to Eghosa Omoigui of EchoVC, “We’re thrilled to announce that we recently co-led a $22 million investment into Frontier Car Group (‘FCG’), a visionary company that in 18 months has become a pioneering force in Africa’s technology industry. Launched just a year and a half ago, Frontier builds and runs tech-enabled used-car marketplaces enabling people to buy and sell cars safely and efficiently for a fair price in top tier emerging markets like Nigeria, where the car-sales market is often unstructured and riddled with preventable complexities.”

Founded by a diverse team of experienced founders who have worked with startups across Africa, Europe, and United States, FCG ensures the complex nature of the used-car marketplace is streamlined from start to finish. FCG says its solving problems in the car vertical marketplaces by organizing the fragmented market, eliminating friction and unnecessary complexity by sourcing verified cars from millions of individual consumers while selling quickly to a large, robust network of verified used car buyers.

Cars45 offers an end-to-end technology solution that eliminates a very significant amount of friction in the purchase, sale and certification of used cars. In doing so, the firm says it has how much value is created for market participants while reducing the workload of, and generating revenue for, relevant government agencies. Even more significantly, the business opportunities generated by the injection of material liquidity into the marketplace are creating new jobs across the automotive industry.

“As an active Africa-focused local investor dedicated to funding high-octane entrepreneurs and concurrently attracting foreign investors to participate in the growth of local SME micro-economies, we see Cars45 as being representative of Nigeria’s, and indeed Africa’s, SME-powered digital infrastructure,” said Eghosa.

Headquartered in Berlin, FCG oversees its high-growth businesses in Mexico, Chile, Turkey, and Pakistan and Nigeria and has 200 people across its markets with plans to continue expanding.

Source: Techmoran